Government: Public debt, government debt within allowable limits

According to the Government, through controlling overspending and borrowing of local budgets, by the end of 2020, Vietnam's public debt was equal to about 55.8 percent of gross domestic product (GDP), and the Government debt was about 49.6 percent of GDP, which are all within the allowable limit.
Regarding specific results, the Government's report said that in 2020, in the management, administration, and use of the State budget, the central budget saved about VND55 trillion, equal to 5 percent of the estimate assigned by the National Assembly.

According to the Government, budget discipline has been tightened, and the inspection, checking, and control of State budget expenditures have been strengthened. Violations causing waste in the State budget detected through inspection, checking, and auditing was strictly handled. The competent authorities promptly issued solutions to exempt, reduce, and extend taxes and other State budget revenues of around VND123.6 trillion to support people and businesses.

The issuance of government bonds to make up for overspending was in line with the State budget's capacity. Repayment was carried out fully and timely as committed, contributing to strengthening the national credit rating. The restructuring of the debt portfolio and strengthening supervision and control on overspending and borrowing of local budget contributed to reducing public debt. By the end of 2020, public debt was about 55.8 percent of GDP, and government debt was roughly 49.6 percent of GDP. All are within the allowable limit.

However, the balancing of the State budget’s revenues and expenditures encountered many difficulties. The State budget's overspending increased compared to the estimate. Noticeably, the system of public non-business units remained bulky and ineffective. The conversion from fees to prices and the roadmap for adjusting public non-business service prices have not been prompt. Some financial funds outside the State budget have not operated effectively, with operating models unsuitable with reality.

By Anh Phuong - Translated by Thanh Nha

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